Paramount Television Studios (PTVS) is shutting down after 11 years as Paramount Global began the latest round of cost-cutting on Tuesday ahead of the expected merger with Skydance Media.
The news came as Paramount Global leadership began scheduled lay-offs affecting 15% of the US-based workforce, or approximately 2,000 positions, which co-CEOs George Cheeks, Chris McCarthy and Brian Robbins announced in last week’s earnings call.
The company is looking to make $500m in cuts and laid off approximately 800 staff in February.
The closure of PTVS comes amid industry-wide challenges to linear television. Leadership will also have pored over likely synergies with David Ellison’s Skydance Media, which runs a television division and has collaborated on shows like Reacher and Tom Clancy’s Jack Ryan.
PTVS president Nicole Clemens is departing along with what is understood to be 20 to 30 staff. The move was not entirely unexpected as there was consolidation at PTVS after Cheeks brought the company under the same remit as CBS Studios.
All series and development projects will migrate to corporate sibling CBS Studios. In addition to Reacher and Tom Clancy’s Jack Ryan, PTVS has shepherded shows like 13 Reasons Why, The Alienist, and Time Bandits. Upcoming series include Cross, Before, and Murderbot.
In a memo to staff, Clemens noted the studio was not immune to a “challenging and transformative time for the entire industry”. She added, ”This has been the most formative chapter in my career, and that is mainly due to the remarkable colleagues I have had the honor to lead and learn from on a daily basis.”
In a separate memo that appears below in full, the co-CEOs said the lay-offs would take place over three stages and were expected 90% to be complete by the end of September. Marketing and communications, finance, legal, technology and other support functions will be affected.
“The industry continues to evolve,” they wrote, “and Paramount is at an inflection point where changes must be made to strengthen our business.”
The $500m in cost-cutting is part of $2bn in savings identified by Skydance Media, Ellison’s ambitious company which is in pole position to acquire Paramount Global after agreeing to a deal with the media conglomerate’s special committee.
The transaction is expected to close in the first half of 2025 once customary closing conditions and regulatory hurdles are cleared.
A “go-shop” window allowing the special committee to consider rival bids ends on August 21. Sony Pictures and private equity firm Apollo courted Paramount Global, however Sony Group told an earnings call last week it is no longer pursuing a bid.
Hi Everyone,
In June, we laid out our Strategic Plan to return Paramount to profitable growth, which includes streamlining the organization and cutting costs by $500 million on an annualized basis. As we continue to advance our plan, we announced on our earnings call last week that we will be reducing our US-based workforce by approximately 15%, focusing on redundant functions and streamlining corporate teams.
This process will take place in three phases, starting today and continuing through the end of the year. We expect 90% of these actions to be complete by the end of September.
We know that having to part ways with teammates whose contributions have been instrumental to our success is incredibly hard. In partnership with our HR leaders, we are committed to providing support to employees transitioning on from Paramount and to our teams who will need to adapt to these changes. During this time, we ask that everyone please be mindful of how this news may affect your colleagues and offer support to those who need it.
The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business. And while these actions are often difficult, we are confident in our direction forward. We understand that you may have questions about next steps, and while we may not be able to provide all the answers at this time, we will continue to update you on our progress.
We remain ever grateful for your hard work in delivering results for our audiences and communities.
Best,
George, Chris & Brian
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